REG - Turkiye Petrol Rafin - 3rd Quarter Results <Origin Href="QuoteRef">TUPRS.IS</Origin>

Turkiye Petrol Rafinerileri ASAnnouncement

10/11/2014 09:39

RNS Number : 4398W
Turkiye Petrol Rafinerileri AS
07 November 2014
TURKISH PETROLEUM REFINERIES CORPORATION (TUPRAS)
3Q 2014Results 
07 11 2014
Press Release
Units are being completed one by one in Tupras Game Changing RUP Investment
In the first half of the year, improving economic prospects and geopolitical risks push Brent oil prices up to 115 Dollars per barrel. In the 3rd quarter, worsening economic conditions outside of the USA and reduced perceptions of geopolitical risk in Ukraine and elsewhere, led to oil prices receding to 95 dollars per barrel by the end of September. This meant inventory losses across the sector.
During the first 9 months of the year, new refineries in Asia and the Middle East along with high capacity utilisations from US refineries thanks to cheaper crude and energy costs, led to an increase in supply. Economic slowdowns in Europe and Emerging markets negatively impacted product demand and therefore product prices, with the exception of Gasoline & Naphtha, leading to a decline in Med Margins from 2.13 dollars per barrel in 2013 to 1.40 dollars per barrel in 2014. 
In the third quarter, major maintenance combined with strong demand for gasoline, as well as rapidly falling crude oil prices helped the Med Margin to improve from 1.05 dollars per barrel to 3.45 dollars per barrel. Despite the inventory losses due to crude price declines, in the 3rd quarter, Tupras net margin increased to 5.53 $/barrel from 4.13 $/barrel For the full nine months, a net margin of 2.59 $/barrel last year increased thanks to foreign exchange effects to 2.71 $/barrel 
In the first 9 months of the year, capacity utilisation was 72.6%. In the early part of the year, maintenance, including connections for the RUP investment as well as a poor refining environment were the main factors. Lower asphalt demand and thin trading margins meant that domestic sales fell by 1.9 million tons (743,000 tons of asphalt and 1.14 million tons of diesel). Due to lower production volumes exports were down 172,000 tons at 16.1 million tons. 
Despite sales volumes and Med product prices falling, sales revenues were 0.7% above those of 2013, due to a 16% devaluation of the currency. 
Operational and Financial Data
2013 / 9 Months
2014 / 9 Months
Diff
Total Volume Processed (ton*000)
16.571
15.293
-1.278
Domestic Sales (ton*000)
14.530
12.593
-1.937
Total Sales (ton*000)
18.214
16.105
-2.109
Revenues (Million TL)
30.482
30.686
%0,7
Operating Profit (Million TL)
362
402
%11
Profit Before Tax (Million TL)
339
279
-%18
Net Profit (Million TL)
1.084
1.246
%15
For the first 9 Months of 2014, despite inventory losses caused by falling crude oil and product prices, operating profits rose 11% to 402 million TL. Due to interest expenses and foreign exchange losses, profit before tax was 18% lower at 279 million TL. Tax incentives for the RUP investment reached a total of 977 million TL for the period, boosting net profits to 1.246 Billion TL
As of the end of September, the RUP investment was 98.2% completed and a total of 1.9 Billion TL was invested during the period. Total investment on the Project, which is expected to contribute a Billion USD to the nation's current account balance, had reached 2.6 Billion out of a total of 2.7 billion USD
Whilst striving to ensure guarantee of supply of the highest quality products to the Turkish market, we continued to invest in a project that will raise the company's profile in the sector, contribute to the nation's current account, is currently providing employment for thousands of workers and will help us to generate greater value for our shareholders and other stakeholders in the future.
THE CONSOLIDATED INCOME STATEMENT
In accordance with Capital Market Board Regulations

Unaudited Income Statement
Unaudited Income Statement
(1000 TL)
(1000 USD)
01.01 2014 30.09.2014
01.01 2013 30.09.2013
%
change
01.01 2014 30.09.2014
01.01 2013 30.09.2013
%
change
Revenue 
30.685.740
30.482.094
1
14.190.448 
16.371.499
(13)
Cost of sales (-) 
(29.649.048)
(29.343.296)
1
(13.711.036)
(15.759.867)
(13)
GROSS OPERATING PROFIT
1.036.692
1.138.798
-9 
479.412
611.632
-22 
General administrative expenses (-) 
(354.917)
(331.520)
7
(164.129)
(178.055)
(8)
Marketing, selling & distribution expenses (-) 
(123.560)
(144.543)
(15)
(57.140)
(77.632)
(26)
Research & development expenses (-) 
(11.432)
(14.158)
(19)
(5.287)
(7.604)
(30)
Other operating income 
133.328
115.779
15
61.657
62.183
(1)
Other operating expenses (-) 
(277.769)
(402.358)
(31)
(128.453)
(216.101)
(41)
OPERATING PROFIT/ (LOSS) 
402.342
361.998
11
186.061
194.424
-4 
Income/ (expense) from investment activities
(29)
502
(106)
(13)
270
(105)
Income from investments accounted by equity method
45.331
71.340
(36)
20.963
38.316
(45)
OPERATING PROFIT/ (LOSS) BEFORE FINANCIAL INCOME/LOSS 
447.644
433.840
3
207.010
233.009
-11 
Financial income 
353.116
665.604
(47)
163.297
357.486
(54)
Financial expenses (-) 
(521.741)
(760.905)
(31)
(241.276)
(408.671)
(41)
PROFIT BEFORE TAXATION
279.019
338.539
(18)
129.031
181.824
-29 
Income Tax expense
974.516
748.827
30
450.659
402.184
12
 -Tax expense for the period
(2.551)
(5.786)
(56)
(1.180)
(3.108)
(62)
 -Deferred tax income/(expense)
977.067
754.613
29
451.839
405.292
11
PROFIT FOR THE PERIOD
1.253.535
1.087.366
15
579.690
584.009
-1 
Other comprehensive income 






Items to be reclassified to profit or loss 
2.373
2.670
(11)
1.097
1.434
(23)
 Changes in currency translation differences 
2.373
2.670
(11)
1.097
1.434
(23)
Other comprehensive income/(expense) after taxation
2.373
2.670
(11)
1.097
1.434
(23)
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD
1.255.908
1.090.036
15
580.788
585.443
-1 







Distribution of Profit for the Period






 Non-controlling interesests
7.279
3.668
98
3.366
1.970
71
 Attributable to equity holders of the Company
1.246.256
1.083.698
15
576.324
582.039
(1)
Distribution of Total Comprehensive Income for the Period






 Non-controlling interesest
7.279
3.668
98
3.366
1.970
71
 Attributable to equity holders of the Company
1.248.629
1.086.368
15
577.421
583.473
(1)
Earnings per share 
4,98
4,33
15
2,30
2,33
(1)







EBITDA Calculation:
01.01 2014 30.09.2014
01.01 2013 30.09.2013
% change



OPERATING PROFIT/ (LOSS) 
402.342
361.998
11



Income/ (expense) from investment activities


-



Income from investments accounted by equity method
45.331
71.340
-36



 Credit finance gains
-121.327
-96.982
25



 Credit finance charges
6.851
7.719
-11



 Foreign exchange gains on trade receivables,net
-4.713
-10.528
-55



 Foreign exchange loss on trade receivables,net
0
0
-



 Foreign exchange gains on trade payables,net
0
0
-



 Foreign exchange loss on trade payables,net
236.409
363.385
-35



Total Depreciation
189.870
180.737
5



EBITDA, (1000 TRY)
754.763
877.669
-14



EBITDA, (1000 USD)
349.036
471.384
-26



CONSOLIDATED BALANCE SHEET
In accordance with Capital Market Board Regulations

Unaudited Balance Sheet (1000 TL) 
Unaudited Balance Sheet (1000 TL)
%
change
Unaudited Balance Sheet (1000 USD) 
Unaudited Balance Sheet (1000 USD)
%
change

30-Sep-2014
31-Dec-2013

30-Sep-2014
31-Dec-2013

Current assets 
8.960.439
9.764.538
(8)
3.931.914
4.575.054
(14)
Cash and cash equivalents
3.728.804
3.663.114
2
1.636.230
1.716.307
(5)
Trade receivables (net) 
1.130.713
1.956.634
(42)
496.166
916.757
(46)
 Due from related parties
228.892
343.355
(33)
100.440
160.875
(38)
 Trade receivables from unrelated parties 
901.821
1.613.279
(44)
395.726
755.882
(48)
Other receivables 
40.680
38.933
4
17.851
18.242
(2)
 Due from unrelated parties
40.680
38.933
4
17.851
18.242
(2)
Derivatives
55.736
-
-
24.457
-
-
Inventories
3.216.758
3.456.300
(7)
1.411.540
1.619.407
(13)
Prepaid expenses
93.898
198.693
(53)
41.203
93.095
(56)
Assets related to current period tax
593
1.330
(55)
260
623
(58)
Other current assets 
693.257
449.534
54
304.207
210.624
44
Non-current assets 
14.045.946
11.374.849
23
6.163.476
5.329.546
16
Financial investments
4.000
4.000
-
1.755
1.874
(6)
Investment accounted by equity method
781.872
804.168
(3)
343.092
376.783
(9)
Investment property 
4.621
4.621
-
2.028
2.165
(6)
Property, plant and equipment 
10.022.472
8.321.563
20
4.397.943
3.898.966
13
Intangible assets(net) 
39.920
39.367
1
17.517
18.445
(5)
 Other intangible assets 
39.920
39.367
1
17.517
18.445
(5)
Prepaid expenses
327.621
405.292
(19)
143.763
189.895
(24)
Deferred tax assets
2.307.264
1.330.197
73
1.012.446
623.247
62
Other non-current assets 
558.176
465.641
20
244.932
218.170
12
TOTAL ASSETS 
23.006.385
21.139.387
9
10.095.390
9.904.600
2
Current Liabilities 
10.221.523
10.396.466
(2)
4.485.288
4.871.136
(8)
Short-term financial liabilities (net
345.842
909.587
(62)
151.758
426.176
(64)
Current portion of long-term financial liabilities(net)
406.796
165.084
146
178.505
77.348
131
Trade payables (net) 
6.993.231
6.793.651
3
3.068.687
3.183.082
(4)
 Due to related parties
27.454
40.555
(32)
12.047
19.002
(37)
 Other trade payables
6.965.777
6.753.096
3
3.056.640
3.164.080
(3)
Payables related to employee benefits
33.431
65.524
(49)
14.670
30.700
(52)
Other payables
5.257
9.563
(45)
2.307
4.481
(49)
 Other payables to unrelated parties
5.257
9.563
(45)
2.307
4.481
(49)
Deferred income
36.257
10.656
240
15.910
4.993
219
Current period corporate tax provision
2.551
6.178
(59)
1.119
2.895
(61)
Short-term provisions
84.175
363.747
(77)
36.937
170.429
(78)
 Employee benefits
27.121
4.097
562
11.901
1.920
520
 Other provisions
57.054
359.650
(84)
25.036
168.510
(85)
Other current liabilities
2.313.983
2.072.476
12
1.015.395
971.033
5
Non-current Liabilities 
6.786.603
5.604.407
21
2.978.017
2.625.876
13
Long-term financial liabilities(net)
6.618.146
5.447.345
21
2.904.097
2.552.286
14
Long-term provisions
163.775
152.003
8
71.866
71.219
1
 Employee benefits
163.775
152.003
8
71.866
71.219
1
Other non-current liabilities 
4.682
5.059
(7)
2.054
2.370
(13)
EQUITY 
5.998.259
5.138.514
17
2.632.085
2.407.587
9
Equity attributable to equity holders of the parent






Share capital 
250.419
250.419
-
109.886
117.331
(6)
Adjustment to share capital 
1.344.243
1.344.243
-
589.865
629.829
(6)
Share premium
172
172
-
75
81
(6)
Other comprehensive reatined gain/loss not classified on profit and loss
(2.672)
(2.672)
-
(1.172)
(1.252)
(6)
 Actuarial gain/(loss) arising from defined benefit plans
(2.672)
(2.672)
-
(1.172)
(1.252)
(6)
Other comprehensive reatained gain/loss classified on profit and loss
59.412
57.039
4
(25.396)
(63.575)
(60)
 Currency translation differences
11.748
9.375
25
(46.312)
(85.907)
(46)
 Financial assets fair value reserve
47.664
47.664
-
20.915
22.332
(6)
Restricted reserves 
163.401
221.417
(26)
71.702
103.742
(31)
Retained earnings 
2.884.837
2.025.761
42
1.265.890
949.145
33
Net Income for the period
1.246.256
1.197.223
4
576.324
629.375
(8)
Total equity attributable to equity holders of the parent 
5.946.068
5.093.602
17
2.587.173
2.364.675
9
Non-controlling interest
52.191
44.912
16
44.912
42.912
5
TOTAL EQUITY AND LIABILITIES 
23.006.385
21.139.387
9
10.095.390
9.904.600
2
CONSOLIDATED STATEMENTS OF CASH FLOWS
In accordance with Capital Market Board Regulations

Unaudited Cash Flow (1000 TL)

30-Sep-2014
30-Sepn- 2013
% change
A. Cash flows from operating activities
1.777.559
1.801.869
(1)




Profit/(loss) before taxation
1.253.535
1.087.366
15
Adjustment for reconciliation of profit/(loss) before taxation
(423.930)
3.344
(12.777)
 - Adjustment for depreciation and amortisation expense
189.870
180.737
5
 - Adjustment for provisions
43.539
42.096
3
 - Adjustment for interest income and expense
123.807
37.377
231
 - Adjustment for unincurred foreign currency translation differences
(2.373)
(2.670)
(11)
 - Adjustment for value gain or loss
(55.736)
-
-
 - Adjustment for income of investments accounted by equity method
(45.331)
(71.340)
(36)
 - Adjustment for deferred tax income
(974.516)
(748.827)
30
 - Adjustment for gain/loss on sales of property, plant and equipment,net
29
(502)
(106)
 - Adjustment for other items related with cash flow of investment or financial activities
301.662
568.423
(47)
 - Other adjustments 
(4.881)
(1.950)
150
Changes in working capital
1.286.721
778.030
65
 - Adjustment for increase/decrease in Inventories
239.542
(400.561)
(160)
 - Adjustment for increase/decrease in trade receivables
830.782
(587.942)
(241)
 - Adjustment for increase/decrease in other receivables related with operations
(338.005)
(505.985)
(33)
 - Adjustment for increase/decrease in trade payables
199.600
1.946.620
(90)
 - Adjustment for increase/decrease in other payables related with operations
354.802
325.898
9
Cash flows from operating activities
2.116.326
1.868.740
13
- Tax payments/returns
(5.441)
(39.404)
(86)
- Payment for penalty
(309.011)
-
-
- Other cash inflow/outflow
(24.315)
(27.467)
(11)
B. Cash flows from investing activities
(1.533.816)
(1.541.431)
(0)
Cash inflows from the sale of property, plant and equipment and intangible assets
89
550
(84)
Cash outflows from the purchase of property, plant and equipment and intangible assets
(1.603.905)
(1.634.745)
(2)
Cash inflows from the sale of other long-term assets
-
12.764
(100)
Dividends received
70.000
80.000
(13)




C. Cash flows from financing activities
(255.144)
821.241
(131)
Cash inflows from financial liabilities
235.062
1.797.306
(87)
Dividend paid
(396.163)
(964.114)
(59)
Interest received
100.530
153.154
(34)
Interest paid
(194.573)
(165.105)
18
Before net increase/decrease in cash and cash equivalents before the effect of foreign currency translation differences
(11.401)
1.081.679
(101)




D. Impact of foreign currency translation differences on cash and cash equivalents
2.373
2.670
(11)
Net increase/decrease in cash and cash equivalents
(9.028)
1.084.349
(101)
E. Cash and cash equivalents at beginning of period
3.087.870
2.764.509
12
Cash and cash equivalents at end of period
3.078.842
3.848.858
(20)
For any further information released today or the financials, please contact us or visit www.tupras.com.tr
Tuncay ONBILGIN
Investor Relations & Strategic Planning Management
E-mail : tuncay.onbilgin@tupras.com.tr
Direct Line : +90 262 316 3269

This information is provided by RNS
The company news service from the London Stock Exchange
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